DP World which was recently upgraded by Fitch Ratings to BBB+ from BBB with stable outlook, after both Fitch and Moody’s upgraded the rating by one notch last year, said that cash from operating activities amounted to $1bn up from $905m in 1H2016 with profits for the period attributable to owners of the company of $606m.
First-half gross throughput rose by 8.2% to 34m teu while consolidated throughput increased by 22.4% to 17.9m teu.
“We have seen a pick-up in global trade particularly in the second quarter of the year, and that combined with the ramp up in our recent investments in Yarimca (Turkey), London Gateway (UK), Rotterdam (Netherlands) and JNP Mumbai (India), has delivered ahead-of-market volume growth,” commented DP World Group chairman and ceo, Sultan Ahmed Bin Sulayem.
In addition, DP World plans, “$170m of acquisitions in our maritime business, which offers significant growth opportunities. These investments leave us well placed to deliver on our strategy to strengthen our port related services and capitalize on the significant medium to long-term growth potential of this industry,” he added.
“Looking ahead to the second half of the year, we expect higher levels of throughput to be maintained. Overall, the steady financial performance of the first six months leaves us confident in meeting full-year market expectations.
“During the first six months, we have seen the consolidation of Pusan (South Korea), further improved contribution from the Jebel Ali Free Zone, and London Gateway after signing the game-changing Asia-Europe service with THE alliance. Furthermore, with the formation of the new shipping alliances in April, we have witnessed market share gains accelerating our volumes in the second quarter,” said the company statement.
During 1H 2017, the company has invested $595m in key markets, including projects in Jebel Ali port (UAE), Jebel Ali Free Zone (UAE), London Gateway (UK) and Prince Rupert (Canada).
Market conditions in the Middle East, Europe and Africa region improved as UAE volumes recovered and London Gateway won the regular Asia-Europe service from THE alliance. Volumes in the UAE were up by 4.3% and the EMEA region grew at 5.4% year-on-year in the first half. Reported revenue in the region grew 3.5% to $1.6bn, aided by the performance of the Jebel Ali Free Zone as non-containerised revenue grew 6.0%.
Markets conditions in the Asia Pacific and Indian Subcontinent region were generally positive. Volume growth in the region of 97.5% was boosted by the consolidation of Pusan (South Korea) with revenue growth of 51.4% to $335m due to the consolidation of Pusan ahead of volume growth due to strong containerised other revenue growth of 8.2% and non-containerised revenue growth of 6.9%.
Market conditions have improved and reported volumes grew by 15.2%, benefiting from stronger volumes in the Americas. Revenues grew by 9.7% to $363m. Profit from equity-accounted investees recorded a loss of $10m due to unfavourable foreign exchange movements in Brazil, however, on a like-for-like basis, jv income was up by 40.5%. There were investments of $71m capital expenditure in terminals across this region during the year mainly focused in Prince Rupert (Canada).
With its committed pipeline of developments and expansions, the current gross capacity of 84.6m teu is expected to rise to more than 100m teu by 2020, in line with market demand.
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